FUJ00116491
FUJ00116491
oe)
PO L Application, Enrolment &
Identity (AE)
UKR&RMG-ITE-40276
13t May 2008
lan Terblanche
Approval of Phase I submission as presented
© Fujitsu Services 2007
FUJ00116491
FUJ00116491
Opportunity Context
Where POL are
No contarct — no client
Noc
Volumes, details, speculative — dvla?
Short list — formal detailed comp dialogue
Too early
Details refined Phas II
2 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
o
FUJITSU
FUJ00116491
FUJ00116491
Key Sales Issues
Significant challenges
¢ Winning proposition to pass Phase I down select
* Timescale — Aggressive 3 phase process
« POL — 6 months ahead of market — customer contract is
only 1 month ahead of engagement
¢ No substantial traction on ID in UK, reasonable new groun
d breaking
3 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
o
FUJITSU
FUJ00116491
FUJ00116491
Customer - Background
Post Office Ltd, a wholly owned subsidiary of Royal Mail
Group plc, the largest post office network in Europe with
14,300 branches. It provides postal services, financial &
banking services, travel services, home phone and
telephony services and leisure services such as gift
vouchers and cards, lottery products and licence
applications
4 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
o
FUJITSU
FUJ00116491
FUJ00116491
Summary of results : 2006 = 2005 e Revenue of £4,439m - up 1.4% - driven by Royal
£m unless stated otherwise Mail and GLS:
External turnover 4,439 4378
Operating p at 22 459 e Operating Profits before Exceptionals of £22m;
Return on sales* (3) _0.5% 3.0% e Expenditure increases of £198m due to higher
Exceptional items: : (93) (72) pension costs, implementation of strategic
Share in Success costs (8) initiatives and higher Post Office Limited costs; and
Other (93) (34)
(Loss)/profit before interest and e = Service to our customers continues to improve
tinder (71) 87 with 94.4% of Retail First Class mail being
Net finance income 97 49 delivered on time. Royal Mail has met or exceeded
botore auton 26 136 11 out of 12 regulatory targets.
Taxation charge (43) (45)
Profit after taxation 13 vas
* Before exceptional items
5 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
foe]
FUJITSU
FUJ00116491
FUJ00116491
Unit and % of No. of Region IRevenue (£m) Facts and Figures Vision
Group external I employees Prorit (Em)~
revenue Margin (%)
270.097 uK Revenue > aaS-606 pillar Boxes Wo be
nesrkemm €3.347m 2 Fo Mait Centres ‘Gernonstrably the
= 2,400 delivery offices best and most
Prorit - 30.000 vehicies trusted postal
e6am > 331000 Bicyctes services company
> Aimost 83 million terns handied every in the worta”
Margin working day
75.8% or 2.0 - Deliver to 27 million addresses a day
Group caternat = dst Class Quality of Service — 94.4%
up exter > 2a Class Quality of Service — 99.1%
qo.805 I Europe Revenue = Sa awe tS provide Service.
eS0om > 645 depots Guay and
2 17.800 venicies Feliabuity”, with tocat
Prorit © Over 1 million parcels nandied every expertise and
<£52m working day knowledge of
different curcures
22.4% of Being integrat to tne
erone feeSh nat Margin ce an
revenue
> 10-760 vie Revenue = 24355 Branches. of which 6.506 urban to “sell products
Gegp e4aim branches (including 458 directly managed) I and services that
and 7.793 rural branches are important to
Loss + Neary 25 million customers = week, our customers
(e102) making over 36 million visits a week simply and at
© Ulcs leading supplier of foreign currency profit’ backed up
Margin > 95% of customers satisfied with their by @ business
(24.8%) branch approach of being
‘cormmunity
minded and profit
9.3% of Group driven. and putting
external customers at the
revenue heart of tne
business:
4403 Revenue > 2 national habs To be the US
eassm + 48 depots most trusted
2 2.700! venictes worldwide carrier
Prorit = 270.000 parcels delivered every day.
€2m © Parcelforce 24 Quality of Service — 96.7%.
3.5% of Group delivered on time and with electronic proof
external Margin oF celivery
revenue Toe
Gther 3.330 wie Revenue’ PostCap Guernsey — captive insurers (iG0=
Wirotty S20rm owned)
owned Royal Mail Pensions Trustees — pension
Profit administrators (100% owned)
sam Romec and Romec Services — facilities
4,800 Management operation (51% subsidiary)
Part # For NOC - building engineering services operation
owned subsidiaries I (51% subsidiary}
only Quadrant — catering services (51% associate)
Cametot. UK national lottery operator (20%
ssociate)
~ before exceptional items
6 © Fujitsu Services 2007
Bid Approval Review Version 7.8 April 2008
foe)
FUJITSU
FUJ00116491
FUJ00116491
Customer - Business Requirements (1)
¢ Business requirements
* Post Office see an opportunity to move into a new market and
generate new revenues
* This market is the Application Enroller of choice for local and
central government agencies such as DVLA, NIS Passport
* Post Office will make a significant play to these agencies to be _
the high street presence of their service. The assisted process is
also one their key themes within this area.
* Service requirements
* Post office are looking for a fully managed end to end service
* Post Office Ltd envisages that up to 1000 Post Office branches will
have the capability to offer a pe folio of services as described by
May 2009, which may be added to and enhanced over time. A further
3000 branches are expected to be delivering these services over a
timeframe yet to be defined.
7 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
o
FUJITSU
FUJ00116491
FUJ00116491
Customer - Business Requirements (2)
* Technical elements:
¢ Photo and signature capture
* Document checking and authentication
¢ Address and Bank Account matching/validation
* Biometric data capture
¢ Fingerprint
* lris/Retina
* Voice
* Data packaging and transfer (drive out paper)
¢ Automated form filling
* Card production and fulfilment
* Mobile ability where required.
8 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
o
FUJITSU
FUJ00116491
FUJ00116491
Customer - Business Requirements (3)
Duration of contract: 3 years
Estimated Value of Contract: £8m to £12m TCV
RMG Account Team have established working
relationships with Speed Identity, Daon and Experian.
9 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
o
FUJITSU
FUJ00116491
FUJ00116491
Procurement Process and Timetable
Milestone Date Owner
Phase I issue 7" May POL
Phase I submission 224 May AS/MA/DL
Phase Il issue 5" June POL
Phase II submission 19" June AS/MA/DL
Phase III issue 3” July POL
Phase III submission 10" July AS/MA/DL
Preferred supplier September POL
Service start (1000 May 2009 FJS & POL
branches)
10 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
oO
FUJ00116491
FUJ00116491
Proposition Strategy
* Due to Fujitsu’s strong position in relation to the branch
estate, POL have had to dictate that proposals are to be for
a stand alone solution — with no integration or dependency
on the existing infrastructure — this requirement provides a
level playing field for all bidders.
11 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
o
FUJITSU
Solution Design - Conceptual
FUJ00116491
FUJ00116491
‘Overall Solution \
/ SS bros SG x
{ roofing
Post Office Client I Services Post a ee
(Experian) oF
So
: x
. 2
/ >
a \ Vo EA
HNG-X central ; DAON )
service I DAON Engine I Enrollment Manager ]
\ vA \ ) \
S SY \ 4 XS 7
Ne FJS Data centre Apps,
/Counter PC
A ~ ; \
t HNGX application j DAON Enroll I
-
al \ Sy
A 4
- Hardware Device »\
ye YG
( Image Document > fingerprint YC Signature 4
\ Capture K Capture I Capture _ Capture J
12 © Fujitsu Services 2007
Bid Approval Review
Version 7.8 April 2008
foe]
FUJITSU
FUJ00116491
FUJ00116491
Solution Design cont...
¢ Technical architecture
* Overview
* The solution to the requirements is to use, ‘off the shelf products’ which will
be integrated into the HNG-X systems management environment. Counter,
Estate management etc
* This will reduce our risk against HNG-X and programme slippage
« Increase our effectiveness in time to market
¢ Allow FJS to continue as prime integrator on the PO account.
Photo-me
* Industry standard biometric devices encapsulated in a public proof chassis
* Modular in design to meet imminent and future biometric needs.
DAON features
* Proofing / Skinning / user authentication / pre enrolment data / windows
device compliant / workflow / mixed application workflow / local encryption /
unreliable network capability / flexibility / fulfilment
* Proven record in secure handling of sensitive personal data (encryption in
storage and transmission).
Experian
* Industry leader in identity proofing. Online services provide real time identity
validation.
ROMEC
* Have existing insight into the power and data requirements within branch.
13 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
foe)
FUJITSU
FUJ00116491
FUJ00116491
Solution Design cont...
* Service architecture
* Booth and devices managed via photo-me engineer or FJS
* Remote systems management for booth, HNG-X and Daon S/W
* Integrated with SNMP alerting and helpdesk for single access.
* Justification
* Covers the major application enrolment processes.
* Integrates with major biometric devices
* Also supporting the IPS bid strategy.
* Gap Analysis
* None known between the COTS packages, identity checking
service, HNG-X, physical hardware in relation to the current
Phase 1 requirements
14 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
o
FUJITSU
FUJ00116491
FUJ00116491
Solution Implementation
* Implementation strategy
* Third Party Management
* Support strategy
* Tier 1: Existing PO HSD desk
* Tier 2: Existing SMC desk
* Tier 3: Either FUS team or 3” party desk
* Tier 4: Either FJS HNG-X dev team or 3” party dev team.
* Due diligence and discovery
* Part of the competitive dialogue phasing. Refinements of
questions and processes.
15 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
o
FUJITSU
FUJ00116491
FUJ00116491
Extent of Re-Use
* HNG —- X reuse
¢ Support structure (Tier 1 /2/3/ 4)
¢ Planned deployment
¢ Field Engineers
* Application / comms / data centre
¢ Industry standard COTS products
¢ Daon (Existing relationship - DVLA FJS IPS)
* Experian (Existing relationship — DVLA and Post Office)
* Photo Me (No known FJS relationships / PO has rel.)
16 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
o
FUJITSU
FUJ00116491
FUJ00116491
Solution Benefits
¢ Leverage of existing investment in branch infrastructure
* Reduces cost and increases speed of delivery
¢ Increases POL’s agility to generate new revenue streams
* Utilisation of existing field services
¢ Lower cost of take on, easier service start
* Integration earlier than POL business case
¢ Allows POL to offer quicker roll-out to estate
¢ Cheaper training costs, reduced support calls for handover
* Unique knowledge of HNG-x
¢ Provide integrated solution day 1
* Strong relationships with best of breed specialist providers
* Focus on SOA, right provider, right price & compliments IPS
« Advantageous understanding of IPS strategy
¢ Will assist POL in future sales and initiatives
17 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
foe)
FUJITSU
FUJ00116491
FUJ00116491
Persuasive Case Analysis
Microsoft Word
Document
18 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
foe)
FUJITSU
FUJ00116491
FUJ00116491
Chief Executive
Alan Cook P
Dave Smith irector of Finance Head of Network Sales Director I I Marketing Director Head of IT
Operations Director & ‘eter Corbett Paula Vennells Dave Glynn Gary Hockey-Morley, procurement
Sandchange P R [Tam Curren P
Bob Booth R Kevin Sellers IR I Mark Davies R]/ Mike Hannon
[Technical Architect Gov Sales Manager usiness engagement AEI procurement
BE
1D
‘OCI:
P Power
R_Receptivity
D_ Dissatisfaction
Coloured Boxes are Key Players
19 © Fujitsu Services 2007
Bid Approval Review
Version 7.8 April 2008
o
FUJITSU
FUJ00116491
FUJ00116491
Power and Alignment Map
- lt is to early at this stage to define the alignment
SEND TSU
FUJ00116491
FUJ00116491
Overview of Relationship Plan
Name / title / role / Fujitsu Services Relationship
Buying Cycle Key Contact and planned Key Need/Payoff
Position activities Key Concern/Risk
Tan Terblanche Regular meeting & lunches [Demonstrate real value &
Procurement flexibility.
Paula Vennells — Head of an Terblanche pcoming branch roadmap Shown POL are investing in
pfretwork resentation. branch.
Gary Hockey-Morley — lan Terblanche IRegular meetings and Flexible architecture speed of take
Marketing Director lof new clients.
Bob Both — Technical Architect I Matt Abdy IRegular contact — meeting & call {Open & flexible architecture
Dave Smith — Op Director & [lan Terblanche Weekly meetings daily calls INo cock-ups before he resigns
[[S/Change
Mike Hannon — AEI flan Terblanche [Daily calls/ regular meetings Best value/flexibility.
procurement
21 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
SAME
Competitive Analysis
FUJ00116491
FUJ00116491
A select few Sl’s
*FJS
*CSC — Qualified Out
*EDS — Qualified Out
A select number of ‘specialist’ providers
«Experian
«Speed Identity
°3M
«Photo Me
eLockheed Martin — Going it alone or qualified out
*Steria — Qualified Out
*Digimarc
“Sagem
«Cogent
*Chubb
22
FUJITSU
FUJ00116491
FUJ00116491
Competitive Analysis
¢ The competitive landscape is moving rapidly:
* CSC — pulled out (*)
* EDS — pulled out
¢ Steria — pulled out
* Our SWOT showed CSC as our major competitor
* Telecom's into branch
¢ Connection from branch to Data-centre
* Not yet informed POL
23
FUJITSU
FUJ00116491
FUJ00116491
Win Strategy
* Key aspects of the win strategy
¢ FJ can help manae and grow additional clients and revenue
enytering this space....
¢ Add value to POL’s overall proposition by ensuring that our
proposition is joined up with the National Identity Strategy
* Leverage existing infrastructure — both branch and back end
and additionally our DVLA relationship
¢ Modular approach — app and hw and process...Provide the
flexibility of change as the market demands to enable POL to
be the High Street provider of choice for Identity Services
* Compliment the wider UK Identity strategy, process, partners
and compliance.
24 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
o
FUJITSU
FUJ00116491
FUJ00116491
Financial Proposal
Provide headline summary detail to support Financial Exec Summary
Total Contract Value and Term of contract
Total Cost of Sale
Services
Software
Hardware
Contingency value
Total Gross Margin (absolute value and percentage)
Services
Software
Hardware
Bid costs - £20k to completion of Phase I
Highlight any cash flow issues
Is there a funding requirement (discuss with Treasury)
© Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
foe)
FUJITSU
Project Data
FUJ00116491
FUJ00116491
Who is the Programme/Project lead?
Mike Stratford
Who is the independent reviewer?
Wendy Warham
What is your budget & level of confidence in this
number?
£11.20m
Who put the numbers together? Have you benchmarked
it against something similar we gave before?
Matt Abdy (CTO), Dr Alex Bazin (ID guru)
What have you spent to date?
£0.2m
How much spend to go?
£11.0m
What's your total contingency in £ and %terms?
£500k 4.5% of Project Budget
When does the project start and end?
Start date: 15/09/07 End Date:31/08/10
What is the size of the entire team? Where will they be
located? How will you communicate with them?
Head count for P&PM and all other members of the project delivery team.
Have you delivered a project of this size/type before?
\Where/when/who was the customer?
Yes, size, type, etc.
What project tools and methodology are you using?
Manage Project, PRINCE2, MSP, ADBM, IDBM, Triole for Service
What does the project governance look like?
Project Exec (name), Senior Supplier (name), Senior User (Name) - (ref to full doc)
26 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
o
FUJITSU
FUJ00116491
FUJ00116491
Impact of late delivery of the Project on the Business
* Total Impact of delay on the Account’s P&L
Week Month Qtr
Cost £ £ £
Revenue £ £ £
Margin Fs Fs £
* If the project is delayed what impact will this have on:
* Project
* Customer
* 3° Party
27
© Fujitsu Services 2007
Bid Approval Review
Version 7.8 April 2008
foe)
FUJITSU
FUJ00116491
FUJ00116491
Delivery Resource Requirements
28 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
foe)
FUJITSU
FUJ00116491
FUJ00116491
Delivery Timetable
f+
the
li ery f =) = has sia ed off the
/ery manager has signed off the
29 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
FUJITSU
FUJ00116491
FUJ00116491
People Issues — is TUPE involved?
TUPE Apply? (Y/N) No
If yes please supply following detail
Numbers involved
Potential
Reductions/Recruitment
Pensions
Other Benefits
Name of HR Advisor
30 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
FUJITSU
FUJ00116491
FUJ00116491
Legal / Commercial
* The procurement process is being run separately from the existing
contract in order to preserve comparability between the bidders
*« Terms and Conditions are broadly in line with our existing contract
but are currently expressed at reasonably high level. We expect
that in practice, should we win, POL will actually contract against
the existing contract to take advantage of closer integration with
HNG-X.
3 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
o
FUJITSU
FUJ00116491
FUJ00116491
Legal / Commercial — Competitiveness Perspective
* Legal and Commercial terms to be negotiated from
Phase II onwards
32 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
foe)
FUJITSU
FUJ00116491
FUJ00116491
Risk Plan
Factored
exposure
Risk Description Owner
Total Factored Exposure
Proposed Contingency
33 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
SAM ISO
FUJ00116491
FUJ00116491
Update on Bid Plan/Budget
Original budget approved @ £20k
£9999999
£99999999
Red Team will be with the key Account members and with
input from the GBU Identity Team.
34 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
o
FUJITSU
FUJ00116491
FUJ00116491
Assessment across common win themes
‘Win Themes
Evidence (please evidence how these insights have been addressed in
the campaign)
Relationships:
Customer Knowledge
Cultural Fit
Explicit Sponsorship
Influence deal shape
Excellent relationship RMG/POL account
Cultural fit demonstrated by current contract and relationships
Executive Approval gained — Business case approved
Must further influence deal shape and solution through our submission
Pricing:
Knowledge of customer business case
Understanding of competitive win price
Provide options for varying installations
Optimum presentation of pricing
rSome knowledge of business case and potential DVLA client
tPOL have expectation of £25m to £40m
Must provide options for mobile solutions and large branches
tOptimum pricing is paramount to us advancing through each stage
Track Record:
Relevant references(sector/scope/offering)
Relevant experience of solution offered
References for retail branch services and IPS knowledge are available
Use relationship with Spencer Chapman (ex PA & Accenture, now POL
ID contracting advisor)
Branch services and retailing experience plentiful, also draw on IPS
knowledge
Partners/Sub-contractors:
Proven track record
Commercial
Governance
Best of breed partners already identified and agreements to work
together have been reached (Experian, PMI, Daon, ROMEC)
Submission:
Evaluation criteria clearly understood
Benefits defined
Clear articulation against evaluation criteria
Must articulate our differentiators and flexibility of options through
jproposal
Proposition, solution and benefits can be clearly articulated
Evaluation criteria emerging, will ensure we address and reference each
f © Fujitsu Services 2007
Bid Approval Re}
ew Version 7.8 April 2008
FUJITSU
Bid Team
FUJ00116491
FUJ00116491
Business Owner
Dave Baldwin
Account Director
lan Terblanche
Opportunity Owner Andy Startin
Bid Manager Damian Leach
Solution Owner Matt Abdy
Proposition Owner lan Terblanche/Andy Startin
Finance Henry Chung
Commercial Guy Wilkerson
Delivery Manager Mike Stratford
Sourcing
P&PM Lead Mike Stratford
o
FUJITSU
FUJ00116491
FUJ00116491
Issues and update on actions from previous reviews
¢ No outstanding actions from previous reviews
37 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
foe)
FUJITSU
FUJ00116491
FUJ00116491
oO
FUJITSU
38 © Fujitsu Services 2007 Bid Approval Review Version 7.8 April 2008
foe)
FUJITSU